🏡 Reno Opp: £425k Bournemouth Bungalow

Hello and welcome to today’s edition of The Reno Hunter newsletter! We're excited to share another renovation opportunity with you, full of potential. This time, we're exploring a 3-bed bungalow in Ferndown, near Bournemouth, which we believe could have £100k+ added to the value to bring it in line with other recent sales in the area.

The Property 🏡

Today's property is a charming 3-bedroom bungalow located in Ferndown, near Bournemouth, BH22 9QU. On the market for £425,000, it sits in a peaceful residential area with convenient access to schools, parks, and excellent transport links, benefiting from Ferndown's proximity to Bournemouth and other nearby amenities.

The property needs modernisation to unlock its full potential, offering offers a blank canvas to create a high-spec family home. With a renovation budget of £45,000, you could transform it into a mid-to-high-end property in line with the local market.

🪴 🔗 View the property on Rightmove 🔗 🪴 

📊 Running The Numbers 📊

💰 Purchase Costs 💰

• Purchase Price: £425,000 (pessimistic and assumes no negotiation)

• Stamp Duty (as primary residence): £8,750

• Legal Fees: ~£1,500

• Mortgage Deposit (25%): £106,250

• Mortgage Arrangement Fee: ~£1,000

Total Purchase Costs: £117,500

🛠️ Refurbishment Costs 🛠️

• Kitchen and Bathroom Upgrades: £25,000

• Redecoration and Carpets: £10,000

• Exterior Improvements (e.g., landscaping, painting): £5,000

Total Refurbishment Costs: £40,000

📈 Holding and Selling Costs 📈

• Monthly Mortgage Payments (5% interest, 75% LTV, assuming 6 months of renovation time): £7,500

• Agent Fees (1.5% of sale price): £8,025

• Legal Selling Fees: £1,000

Total Holding and Selling Costs: £16,525

💷 Summary of Costs and Profit 💷

• Estimated Sale Price (Post-Renovation): £535,000

  Minus mortgage amount of £318,750 (75% of the purchase price, covered by the bank.

• Amount returned: £216,250

• Total Estimated Investment (Deposit + Refurbishment + Fees): £174,025

• Profit After Costs: £42,225

ROI Calculation

Profit (£42,225) ÷ Total Investment (£174,025) = 24.3% 🔥

Why We Like It ❤️

• Location: The area is highly desirable for families due to its excellent schools, green spaces, and transport links. Properties in BH22 at this price point are rare, and renovated homes in the area are fetching way beyond £535,000.

• Potential: With a renovation budget focused on modernizing the kitchen, bathrooms, and key living spaces, the property’s value can significantly increase.

Renovation Plan 🔨

Key Upgrades:

1. Kitchen: £15,000

   • Install a modern, open-plan kitchen with integrated appliances and quartz worktops.

2. Bathrooms: £10,000

   • Update two bathrooms with contemporary fittings and tiling.

3. Decor: £8,000

   • New flooring, plastering, and a full repaint throughout.

4. Garden: £5,000

   • Clear overgrowth, add a patio, and reseed the lawn for a low-maintenance outdoor space.

5. Energy Efficiency: £7,000

   • Replace old windows and insulate the loft to meet modern energy standards.

Contingency: £5,000

How it could look 🖼️ 

We like the use of neutral tones with wooden accents as installed by the previous owners. They will need replacing completely but assuming you don’t want to be knocking down walls to keep your reno costs down, we think the decor choices don’t need to be completely overhauled.

On the other hand a look at the layout and possibility of opening up this kitchen space could also pay off massively, in which case you’ll be looking to have it in-keeping with the style you go for in the living room.

Final Thoughts 

This property is perfect for a buyer looking to create their dream family home while adding value. The £425,000 purchase price doesn’t account for potential negotiation, meaning the total investment could be lower. Even at full asking price, the 24% ROI is strong compared to alternative investments.

For anyone considering Ferndown, this property offers a rare combination of location, potential, and profit. Act quickly, as opportunities like this don’t stay on the market for long.

👉 Looking for renovation inspiration? Check out before-and-after renovation ideas on Instagram.

Wishing you all the best in your projects for 2025!

Until next time…

Happy hunting,
The Reno Hunter Team